Articles

THE ROLE OF THE CCI SYSTEM IN THE DEVELOPMENT OF INSTRUMENTS OF A MULTIPOLAR WORLD

Vladimir Platonov, President of the Moscow Chamber of Commerce and Industry

For many years, the world has been experiencing geopolitical instability. Today, due to the current political situation, international relations that have developed over decades are being consistently destroyed. Russia, under unprecedented sanction pressure in modern history, needs the support and lobbying of its interests by the state and business communities more than ever before. This is particularly evident when it comes to entering new markets and reorienting supply chains.

The main goal of the Russian economy today is to establish domestic production of goods, so that everything from a nail to a spaceship can be made in Russia. The government, with the assistance of the business community, is working to create conditions for the development, manufacturing, and introduction of domestically produced goods with minimal use of foreign components.

However, this task is extremely difficult without cooperation with foreign partners. The business community is able to play a crucial role in restoring and maintaining connections between people. The Moscow Chamber of Commerce and Industry is a member of the worldwide network of the CCI, which has been in existence since the 16th century. For over 400 years, the CCI has been an independent, non-governmental, and non-profit organization of the business community, promoting international standards of conduct that help maintain economic ties during times of crisis. A notable fact: after the events of February 24, 2022, only one of the dozens of chambers with which the Moscow Chamber has partnership agreements has announced the termination of these agreements for political reasons.

The value of the Chamber of Commerce and Industry system lies in the fact that it allows business circles to establish connections, find reliable contractors, and implement specific projects. This system provides real, non-political information to its members, which helps them make information based decisions. The Moscow Chamber of Commerce and Industry, which sees the development of foreign economic activity as a strategic priority, is seeking to explore new forms of cooperation in order to make them more targeted and effective.

Having extensive experience in working with business communities in the majority of primery countries the chamber fully implements its system of business relations in key sectors of the economy. Today, the Moscow Chamber of Commerce and Industry serves as an entry point for numerous international delegations from friendly countries, primarily BRICS and other states in Asia, Africa, and Latin America that are interested in accessing the capital’s market and interacting with its businesses.

We receive business missions from various countries on a daily basis. We tell them about the business rules we follow, the products produced in Moscow, and the opportunities for investment in the Moscow industry. We organize B2B meetings, conferences, and seminars to promote foreign trade in the context of the geopolitical “turn towards the East”. However, this term is somewhat conditional, as loyal friends and reliable partners of Russian businesses are still located almost everywhere in the world.

The modern system of the Russian Chamber of Commerce and Industry consists of 145 regional and municipal chambers, which allows receiving economic information from any part of Russia within a short period of time. This system helps to find “whites”, that is, reliable and trustworthy companies and business partners. The strength of the Moscow Chamber of Commerce and Industry is that it is less constrained by bureaucrati cregulations compared to official structures.
This gives freedom for creative people to organize unusual projects. One example is the development of relations with Chinese manufacturers using an ancient tool such as the commodity exchange, which may seem irrelevant today.

The Moscow Chamber of Commerce and Industry has a unique approach to business that allows it to actively develop horizontal ties. One of the key components of this approach is the Committee for the Development of Cooperation between Business Clubs, which is a part of the chamber’s structure.

This committee works to build interregional connections through the involvement of business councils that include representatives from different regions of Russia, including those who lives in Moscow. Thus, the analysis conducted

by the committee’s experts has revealed that in many regions of Russia, where large-scale construction and infrastructure projects are underway, there are some difficulties with automotive equipment. However, the Chinese market offers a wide range of such equipment today.

In addition, we can discuss not only the possibility of purchasing, for example, graders or excavators, but also the integration of Chinese and Russian technologies to produce Russian attachments to Chinese vehicles. And so, last fall, we had the idea of organizing an exchange of specialized equipment, where specific buyers and sellers could meet. In fact, we decided to combine international and interregional economic needs and organized the Moscow-Beijing special equipment exchange.

The main advantage of this format is that it allows the direct contacts between customers and suppiers of China-made industrial products. By bringing Russian consumers and Chinese manufacturers together, we create the shortest possible path for transactions. Our Chinese partners occupy a leading position in the global market of special equipment and vehicles, producing high-quality, innovative, and environment friendly products. The goods on display at the exhibition fully meet the needs and expectations of our members and Russian entrepreneurs in the fields of road construction, housing and utilities, transportation and logistics, and industry.

The first exchange, which took place at the Moscow Chamber site in November 2023, demonstrated a significant demand for this type of work. During the exchange, orders for 2024 totaled approximately 2,000 trucks and pieces of special equipment, with a total value exceeding 20 billion rubles. This year, we took part in another exchange event, this time in the Black Sea region, with colleagues and partners from other chambers of commerce and industry. This is just one example of the positive results we have achieved in developing business relations through the search for new and unconventional forms of economic cooperation.

What else can the chambers of commerce and industry do to address the disruption of long-term economic relationships and the emergence of new modes of interaction? Firstly, to provide legal assistance in cases where countries and companies that have imposed sanctions are not meeting their contractual obligations and Russian counterparties are suffering losses. Considering that there have been no changes to the legislation regarding the onset of force majeure caused by foreign sanctions, Moscow Chamber has developed the following algorithm.

After carefully reviewing all relevant documents, we have concluded that the company in question (which is significant for Russian entrepreneurs), is acting in good faith, and the non-fulfillment of contractual obligations is due to unilateral violations by foreign partners related to sanctions imposed for political reasons. Secondly, the Chamber can provide assistance to companies to resolve conflict situations, using, if not mediation itself, then mediation principles. This allows to negotiate and settle the current situation outside of court, such as postponing deadlines, finding an adequate replacement for supplies, goods, and components.

Of course, the chambers of commerce and industry can and should assist its members (and not only them, as we do not have mandatory membership in the chamber) in finding new trade areas for companies, through bona fide suppliers from countries that did not impose sanctions (primarily BRICS states), as well as support in entering foreign markets.

Of course, this is beneficial for companies from friendly countries. We add to the well-known phrase “money requires silence” that friendship also requires silence.

Therefore, we do not advertise this work. We meet with colleagues from other chambers of commerce and help to
establish reliable contacts. The chamber also has great opportunities to implement educational projects for Russian companies with regard to working in the current sanctions environment and minimizing risks in foreign trade.

And here it is worth mentioning the educational project of the Moscow Chamber of Commerce and Industry
- the School of Entrepreneurship for foreign students of Moscow universities, “Start Your Business with Moscow”. This project has received a grant from the mayor and is being implemented with the support of the Committee for Public Relations and Youth Policy of Moscow.

We have developed and launched a non-profit humanitarian project aimed at restoring the system of human and entrepreneurial ties. Today, there are hundreds of associations of graduates from Soviet and Russian universities in different countries, uniting people who share our language, culture, and traditions. For example, hundreds of thousands of specialists from different countries have been trained at the Patrice Lumumba People’s Friendship University of Russia since 1960 alone. Now, they work in over 160 countries around the world, and this number is constantly growing. The elite of politics, business, culture, and science from many countries proudly trace their work history back to Soviet universities, which trained specialists for developing countries.

We proposed to use the CCI system, which is located at the intersection of business, government, and education, to solve several problems at once. These include the development of international economic relations, the organization of internships for foreign students, the acquisition of entrepreneurial skills, and the provision of opportunities for small businesses in Russia and friendly countries to enter relevant markets.

In Soviet times, the educational process always included practical training - either introductory or pre-graduation, formal or informal. However, over the past 30 years, we have seen the development of a strong market economy (with more than 900,000 small and medium enterprises and over 1.6 million self-employed people in Moscow alone, and small businesses accounting for 25% of the city’s budget).

This has led to the need for a new approach to practical training. In light of changing import and export directions, many Russian entrepreneurs would benefit from direct contact with foreign countries. At the same time, businesspeople who

trust Russian education are working in dozens of countries around the world. Now, with the help of the Chamber of Commerce and Industry, their representatives will be able to train, in addition to gaining basic knowledge, the basics of entrepreneurship.

This will allow them to use this knowledge not only for the benefit of those who sent them to study but also for their countries. We propose to create a new system of horizontal international business relations that will complement relations between states and large corporations. The Moscow Chamber of Commerce and Industry has invited the business community to consider international students as a promising resource for developing international cooperation. Representatives of Russian companies abroad can benefit from this project, which aims to promote the development

of business skills among international students and facilitate their employment after graduation. This project also aims to improve Russia’s image abroad and take into account our country’s interests in international activities. By working with international students and graduates of Russian universities, we can strengthen Russia’s position in the world by expanding and strengthening the system of horizontal ties. As a result, more than 200 applications were received at the very beginning from students of 30 universities in 61 countries.

After careful selection, 100 students from 23 educational institutions in 50 countries were chosen to participate in the first educational module. This module consisted of six full-time classes, and the children who attended all of them received certificates of completing their studies completion. 48 applications from students from 21 universities from 29 countries were received for participation in the second stage – the acceleration one; according to the results of the test task, 31 students from 17 universities from 23 countries were selected.
Five mentors helped students who joined their team to “complete” projects, calculate economic feasibility, and prepare presentations for experts. All mentors are successful entrepreneurs with experience both in our country and on the international market. As a result, 19 projects were admitted to the defense. These projects were prepared by 22 students from 13 universities in Moscow and represent 16 different countries. The defense took place at Moscow Chamber on June 3rd, 2024.

The third stage of the project is now underway - the finalists are currently interning at companies that are members of the Moscow Chamber. They are working to implement their ideas and gain real-world business experience.

Our training course is structured in a way that minimizes the amount of academic theory, allowing students to familiarize themselves with the material through relevant literature. Instead, we focus on practical tools and techniques. Successful entrepreneurs who are members of the Moscow Chamber acted as lecturers and shared their personal experiences of building businesses from the ground up.

Students could also use practical project management tools during business simulations that complemented the lectures. The Moscow Chamber of Commerce and Industry aims to expand the School of Entrepreneurship’s activities. We anticipate that our project will grow actively, attracting more and more young, active, and talented individuals, and will be a significant contribution from the business community towards the development of international partnerships.

Our next step is to ensure that Russian students acquire the same skills - this will help implement joint projects between Russian and foreign entrepreneurs. Young entrepreneurs are the future of our nations.
PUBLICATIONS №2 2024 BUSINESS: TACTICS AND STRATEGY